SEG – Partners

Genius creates children “Content with a Purpose,” which is a unique offering, and addresses a massive global audience.

Since 2013, SEG has raised over $120 million for the company (including $58 million registered direct October 2020), guided it through an up-list to Nasdaq in 2016, and provided enough capital for the company to substantially increase its portfolio of animated content.

This strategy of making an early commitment as a principal investor and providing white-glove capital markets advisory service has been utilized with other clients as well.

Timeline

2013

Andy Heyward takes control of Genius Brands.
2014

Launches Thomas Edison Secret Labs.
2015

Launches Kid Genius. Begins development of Llama Llama.
2016

Begins development of Rainbow Rangers. Partners with Netflix on Llama Llama. Up-list to NASDAQ.
2017

Mattel signs as master toy partner for Rainbow Rangers. Nickelodeon signs as distribution partner for Rainbow Rangers.
2018

Llama Llama premiere. Season 2 of Llama Llama green-lit. Rainbow Rangers premieres on Nick Jr.
2019

Season 2 of Rainbow Rangers green-lit. Global distribution of Rainbow Rangers achieved. Superhero Kindergarten announced.
2020

Amazon Prime signed to premiere Superhero Kindergarten. Rainbow Rangers toys to debut at Walmart. Cartoon Channel to launch across various streaming services. Announced launch of new animated series starring Shaquille O’Neal.

Genius Brands

$58.0 Million

Registered Direct

October 2020

Sole Placement Agent

Genius Brands

$30.0 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$9.0 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$5.5 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$2.8 Million

Registered Direct

May 2020

Sole Placement Agent

Genius Brands

$11.0 Million

PIPE

March 2020

Sole Placement Agent

Genius Brands

$2.0 Million

Registered Direct

Febrary 2019

Sole Placement Agent

Genius Brands

$4.5 Million

PIPE

August 2018

Sole Placement Agent

Genius Brands

$4.5 Million

PIPE

August 2018

Sole Placement Agent

Genius Brands

$6.4 Million

Registered Direct

October 2017

Sole Placement Agent

Genius Brands

$4.3 Million

PIPE

October 2015

Sole Placement Agent

Genius Brands

$6.0 Million

PIPE

May 2014

Sole Placement Agent

We were attracted to VUZI due to its presence in the
nascent but growing industry of augmented and virtual reality smart glasses.

SEG seeks out companies with disruptive technology who we believe have first-mover advantage in their market. We felt that VUZI enjoyed that distinction when we first met, and feel even more strongly that is the case today.

Since meeting VUZI, SEG has raised the company over $100 million, including $27 million in 2020.

Solution type

M-SERIES Smart Glasses

End market: Enterprise

Market status: Emerging

Projected market opportunity: $10B+

Blade Smart Glasses

End market: Enterprise, Security / 1st Responders, Prosumer

Market status: Emerging

Projected market opportunity: $1B+

OEM Solutions

End market: Custom Projects across multiple industries

Market status: Developing

Projected market opportunity: $100M+

Timeline

2013

Vuzix Unveils its M100 Smart Glasses at International Consumer Electronics Show
Releases the Wrap 1200AR, its Next Generation Digital See-Through AR Eyewear System
Meets SEG
2014

Begins shipment of its Lenovo co-branded M100 Smart Glasses into China
2015

Up-list to Nasdaq Composite. Receives $24.8M in funding from Intel Corporation
2016

Begins commercial shipments of the M300
2017

Vuzix Corporation Completes Transition to Higher Volume Manufacturing Facilities
Vuzix Corporation Signs 3-Year Supply Agreement with Toshiba for Custom M300 Smart Glasses Solution
2018

Launch of Consumer Blade Smart Glasses Commercial Edge Product
2019

Launch of Consumer Version of the Blade Augmented Reality Smart Glasses
Introduction of M400 Smart Glasses
2020

Introduction of M4000 Smart Glasses for Enterprise

Vuzix Corporation

$15.5 Million

Registered Direct

September 2020

Sole Placement Agent

Vuzix

$11.25 Million

Registered Direct

May 2020

Sole Placement Agent

Vuzix

$20 Million

Registered Direct

July 2019

Sole Placement Agent

Vuzix

$30 Million

Registered Direct

January 2018

Co-Placement Agent

Vuzix

$8.6 Million

Registered Direct

December 2017

Co-Placement Agent

Vuzix

$14.5 Million

Registered Direct

December 2016

Sole Placement Agent

Vuzix

$6.6 Million

Registered Direct

July 2016

Sole Placement Agent

Vuzix

$10.0 Million

Up-List Financing

June 2013

Financial Advisor

SEG & 22nd Century Group (NYSE: XXII)

SEG found 22nd Century (NYSE: XXII) in 2011. XXII is another example of a company that was once both under-capitalized and stuck on the OTCBB, where it is very difficult to garner attention from institutional investors.

XXII is a plant biotechnology company that has over 200 patents surrounding the genetic pathway in the tobacco plant that can
up-regulate or down regulate nicotine production in the tobacco plant. The FDA is interested in this product as they are focused on developing tobacco products with non-addictive levels of nicotine.

SEG was an early backer of XXII, participating in the initial rounds of capital raises. This helped attract other partners in our investor network.

Nine years later, SEG has raised over $125 million for XXII, including a $54 million common stock only deal in October 2017.

Timeline

2011

XXII meets SEG
FDA Clears XXII X-22 IND for Phase II-B Smoking Cessation Clinical Trial
2012

Announces intent to file Modified Risk Tobacco Product (MRTP) application with the FDA
2013

British American Tobacco Licenses XXII Technology
2014

Invests in Anandia Labs. Up-list to NYSE AMEX
2015

Receives order for nearly five million SPECTRUM US Government Research cigarettes
2016

Files MRTP application with FDA for lowest nicotine tobacco cigarettes
2017

FDA grants authorization for XXII to conduct clinical trial studying low tar-to-nicotine ratio cigarettes
2018

Aurora Cannabis (TSX:ACB) signs a binding term sheet to acquire Anandia Labs from XXII
Files pre-market Tobacco Application with the FDA
2019

FDA accepts and files application for MRTP very low nicotine cigarettes
2020

XXII presents MRTP to FDA’s Tobacco Product Scientific Advisory Committee

22nd Century Group

$11 Million

Warrant Exchange

November 2019

Financial Advisor

22nd Century Group

$54 Million

Registered Direct

October 2017

Sole Placement Agent

22nd Century Group

$13 Million

Warrant Exchange

June 2017

Financial Advisor

22nd Century Group

$11.4 Million

Registered Direct

October 2016

Sole Placement Agent

22nd Century Group

$5.0 Million

Registered Direct

July 2016

Sole Placement Agent

22nd Century Group

$5.5 Million

Registered Direct

February 2016

Sole Placement Agent

22nd Century Group

$6.0 Million

Registered Direct

June 2015

Sole Placement Agent

22nd Century Group

$4.3 Million

Registered Direct

September 2014

Sole Placement Agent

22nd Century Group

$13.6 Million

Warrant Exchange

December2013

Financial Advisor

22nd Century Group

$2.5 Million

PIPE

January 2013

Sole Placement Agent

22nd Century Group

$1.0 Million

Warrant Exchange

November 2012

Financial Advisor

22nd Century Group

$1.0 Million

PIPE

May 2012

Sole Placement Agent

Transworld Holdings, Inc.

$2.5 Million

Registered Direct

December 2020

Sole Placement Agent

Oblong, Inc.

$5.0 Million

Registered Direct

December 2020

Sole Placement Agent

Arcimoto, Inc.

$15.25 Million

Registered Direct

November 2020

Sole Placement Agent

Genius Brands

$58 Million

Registered Direct

October 2020

Sole Placement Agent

Oblong, Inc.

$2.85 Million

Registered Direct

October 2020

Sole Placement Agent

Vuzix Corporation

$15.5 Million

Registered Direct

September 2020

Sole Placement Agent

Arcimoto, Inc

$10.0 Million

Registered Direct

July 2020

Sole Placement Agent

Arcimoto, Inc

$8.5 Million

Registered Direct

June 2020

Sole Placement Agent

Social Reality, Inc.

$13.0 Million

Private Placement

June 2020

Sole Placement Agent

BioSig Technologies, Inc.

$17.5 Million

Registered Direct

June 2020

Sole Placement Agent

Arcimoto, Inc.

$8.0 Million

Registered Direct

June 2020

Sole Placement Agent

Genius Brands

$30.0 Million

Registered Direct

May 2020

Sole Placement Agent

Vuzix Corporation

$11.25 Million

Registered Direct

May 2020

Sole Placement Agent

Silo Pharma Inc.

$2.4 Million

Registered Direct

May 2020

Lead Placement Agent

Genius Brands

$11.0 Million

PIPE

March 2020

Sole Placement Agent